KPH

THIRD GENERATION ADDS ANOTHER DIMENSION TO SUCCESSFUL CONSTRUCTION COMPANY

June 15, 2017

“I won’t buy another dozer without intelligent Machine Control”

In 2011, when Eric Merhiy became President/
Owner of KPH, Inc., his family’s construction
company, he wanted to maintain the solid
reputation that his grandfather and father had
worked hard to establish. He also looked to
leave his own mark on the Fargo-based firm. To
do that, he enhanced the company’s focus on
site-development jobs.

“I believed we could increase our offerings in
site work to a point that we could perform all of it
ourselves,” recounted Merhiy. “Before I took over,
we only did the underground aspects – water,
sewer and storm sewer. I saw an opportunity
to do everything and offer it as a package to our
customers.”

Merhiy’s hunch paid off, and KPH has
grown from 20 employees to around 60 during
busy times. The firm began to take on more
mass-excavation applications of projects, in
addition to the other utility work the company
performed under Merhiy’s father, a move that
added both employees and control for KPH.

“Today, we can handle everything up to paving
in-house,” said Merhiy. “Because of this, we have
a lot more influence over the time frame and
quality of our results. We don’t have to wait for
anyone or follow another contractor’s schedule.
If it’s a KPH jobsite, it’s only KPH equipment
and employees doing the work. I think our
customers appreciate that.”

Merhiy has continued to look for ways to grow
the business, and in 2016 he added crushing to the
company’s service list.

“Similar to adding excavating, we thought
crushing could help us fill a niche,” he explained.
“We target smaller tonnages, up to 25,000 tons. We
can crush concrete on site and reuse the material as
base, or we can go to a site and crush for someone,
and they can transport it. We have a mobile
crusher, so our goal is to get in, crush and get out.”

While these additions occurred under Merhiy’s
watch, he says the main reason for KPH’s success
is its employees, like Vice President Patrick
Hockett. “One hundred percent – our growth
is because of our staff. We wouldn’t be where
we are without people like Patrick; he’s been a
phenomenal asset. We have the best people in the
business here.”

Larger staff, bigger projects

As KPH added services and manpower it
was able to pursue bigger jobs. In 2013, it served
as a subcontractor on the $400-million Sanford
Hospital in Fargo, completing water, sewer and
storm-sewer installations in the last three years.

KPH’s largest contract came in 2016 as it
completed a massive, $10-million remodel
for North Dakota State College of Science.
Beginning last April, the company installed new
parking lots, roads, electrical system and water
utilities – completing the job before the school’s
fall semester began in August.

“We basically tore up the entire campus,”
recalled Merhiy. “It was a great effort to be a part
of. There was a lot to do in a short time frame, but
we were able to hit our deadline.

“This was a landmark project for us,” he
continued. “It is the largest we’ve done and was
pretty well-known. This gives us something we
can point to when we are talking to potential
customers. The school and the engineers were
happy, so we were pleased. It’s a nice feather in
our cap.”

‘Intelligent’ decisions

When KPH decided to move into excavating,
it did so with an equipment advantage. Merhiy
turned to General Equipment & Supplies, Inc. and
Sales Rep John Gromatka for Komatsu intelligent
Machine Control dozers. The company owns a
D61PXi and a D51PXi and rents two more D61PX
dozers that are equipped with aftermarket GPS
systems. For KPH, doing dirt work with no GPS
control is out of the question.

“I won’t buy another dozer without intelligent
Machine Control,” promised Merhiy. “We are
100-percent more efficient with them. Moving dirt
once and being on-grade without using any stakes
has changed our business. I don’t know how we’d
ever do a dirt contract without these dozers any
more. It just wouldn’t make any sense.”

KPH uses its dozers for parking lots and
building pads, and has begun putting them to
work on pipe jobs to help prep roads in front of
the dirt crews.

The company also turns to Gromatka at General
Equipment & Supplies for other Komatsu pieces.
KPH has eight Komatsu excavators ranging from
a PC138USLC to a PC490LC, as well as a WA380
wheel loader.

“We’ve been running Komatsu excavators for
15 years,” reported Merhiy. “We have such a great
relationship with General Equipment and John
that we always use Komatsu. They take great care
of us.”

Building for the future

As with many family companies, the succession
plan is already in place at KPH – however, it would
be fair to categorize it as a long-term plan.

“I have two boys who love trucks and dozers,
but they can only operate the toy versions,” joked
Merhiy of his sons Gavin (5) and Gage (3). “The
opportunity is there for them to be the fourth
generation to run the business if that’s something
they want to do.

“Until then, I think KPH has a strong future
ahead of it,” he continued. “There is plenty of
growth opportunity. Our entire staff is committed
to this place, and that’s a great thing for us.”